Tesoro CEO sells shares on margin call

Tesoro Corp. CEO Bruce Smith sold 251,100 shares he holds in the company because of a margin call, the company said today.

When you buy stock on margin, you’re essentially borrowing from your broker. If the stock falls below a certain value, you may have to sell shares. And Tesoro’s stock has gotten hammered in the market meltdown, trading at about $8.36 a share this morning from $16.75 two weeks ago.

Smith isn’t alone in getting a margin call. Other CEOs have had to sell shares as the market has tanked.